Two individuals from the People’s Republic of China (PRC) appeared in federal court in Portland, Oregon, and Houston, Texas. They face charges for acting as agents of the PRC government without notifying the Attorney General. The defendants, Yuance Chen and Liren “Ryan” Lai, were arrested on June 27, 2025. They are accused of conducting clandestine intelligence operations in the United States for the Ministry of State Security (MSS), China’s principal foreign intelligence service.
The activities included facilitating a cash payment for information related to U.S. national security, gathering intelligence about U.S. Navy personnel and bases, and recruiting potential MSS assets within the U.S. military.
“This case underscores the Chinese government’s sustained and aggressive effort to infiltrate our military and undermine our national security from within,” said Attorney General Pamela Bondi. “The Justice Department will not stand by while hostile nations embed spies in our country.”
U.S. Attorney Craig H. Missakian emphasized the ongoing efforts to counter espionage threats: “These charges reflect the breadth of efforts by our foreign adversaries to target the United States.”
FBI Director Kash Patel highlighted the coordinated operation that led to these arrests: “This case was a complex, coordinated effort and is an example of outstanding counterintelligence work done by FBI San Francisco, Portland, Houston, San Diego, and the Counterintelligence Division.”
FBI San Francisco Field Office Special Agent in Charge Sanjay Virmani stated that this case represents a significant disruption of a covert operation directed by China’s Ministry of State Security.
Assistant Attorney General for National Security John A. Eisenberg reiterated commitment to defending against such threats: “Under my leadership, the National Security Division will continue to defend our nation and neutralize our adversaries’ clandestine spy networks.”
According to allegations in an unsealed criminal complaint, Lai recruited Chen around 2021 to work for MSS. They facilitated a $10,000 dead-drop payment in Livermore, California in January 2022. Following this event, they continued their activities on behalf of MSS by identifying potential assets within the U.S. Navy.
Chen allegedly contacted a Navy employee over social media and arranged tours with them on behalf of MSS between 2022 and 2025. He also visited various Naval installations and recruitment centers where he gathered sensitive information.
Lai traveled to Houston in April 2025 under business pretenses but engaged in suspicious travel patterns across several states before returning to Texas.
Chen and Lai face charges under Title 18 of the United States Code Section 951 for operating as agents of a foreign government without proper notification. If convicted, they could be fined up to $250,000 each or imprisoned for up to ten years.
The investigation is led by FBI’s San Francisco Field Office with assistance from other regional offices and NCIS. The prosecution is managed by multiple divisions within the Department of Justice.
All defendants are presumed innocent until proven guilty beyond reasonable doubt.
